HUD's New Market Approach To Funding

A change in HUD's strategy may have nonprofits and housing authorities housing authorities begging for money from Wall Street rather than HUD.

1 minute read

February 11, 2004, 1:00 PM PST

By Chris Steins @planetizen


"Faced with a $7 million gap for one of the project's 12 buildings... and after exhausting possibilities for local and federal low-income housing funds, Ms. Steen's nonprofit... tried something new: They borrowed the money from Fannie Mae, the Washington-based government-chartered mortgage-market concern, and Bank of America Corp., of Charlotte, N.C. As collateral for the loan, they used anticipated annual grants from the Department of Housing and Urban Development that were earmarked for building improvements like roof repairs." [Editor's note: The link below is available to non-subscribers for a period of 7 days.]

Thanks to Chris Steins

Wednesday, February 11, 2004 in Wall St. Journal

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